I found an article about Krag rifles in a 1920 Fur-Fish-Game magazine. It was touted as a good inexpensive rifle for a little over $5 (a good bolt-action sporting rifle was bringing in about $50). It was noted that the carbine length (20") was the most desirable. It is ballisticallly superior to the 30-30 lever action, which was very popular at the time. The article went on to state that if your gun fell out of the canoe on a hunting trip you wouldn't be out much. It also stated that ammo could be had at $16 per thousand. It's a little more difficult nowadays to find ammo, although I've been able to find it. Reloading is another avenue.
The desire to have a Krag in carbine length for hunting must have lead to the demise of several Krag rifles being cut down. Your cut down Krag seems to have kept the original style sights. Most cut down types I've seen used a different front sight. I too have a cut down 1896 Krag. The replacement barrel is 24" and is from a 1903 Springfield (made in 1909). My handguard is gone, but I am otherwise happy to own it. It is representative of a Krag that had its usefulness extended by being sporterized. Not as valuable as a non-sporterized Krag. Its biggest value is what it means to you.